Quote:
Originally Posted by Rick Lee
I'm still amazed it's as cheap as it is. How many gallons of gasoline can you refine from a 55 gal. drum? If oil is now $130 per bbl., that's $2.36 per gallon and that's before it's refined, brought to market and taxed, let alone turned a profit for anyone. How in the world do they get all that done for only $1.50 in mark up?
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Actually, I believe there's only 42 gallons in a barrel of crude. That's works out to $3.10/gallon at $130/barrel. Add ~$0.60/gallon for state and federal excise tax, and we're up to $3.70/gallon. Throw in at least $0.25-30 for the refiners and retailer's profit, and we're kissing $4/gallon. That also assumes we get 42 gallons of gasoline from 42 gallons of crude, which we aren't.
Crude will continue to rise, until the market is derailed. Like Wayne, I believe the market has overridden fundamentals. Everyone has been primed to expect higher oil prices under no rational basis.
I support higher oil prices to encourage conservation, but these price increases are absurd. A liberal's wet dream this is.